Secure-24 Provides IT Transitions for Automotive Group
When businesses encounter structural change, they often call on expert partners to help transition the organization without any disruption to operations. An outsourced IT partner gives organizations several advantages amid mergers, acquisitions, divestitures or private equity deals, especially when there is a tight regulatory deadline to separate IT systems. Providers can ensure a smooth transition, while providing uninterrupted service to employees, suppliers and customers.
In the automotive industry, Secure-24 assisted a glass manufacturing group that changed ownership twice within four years – first, through a divestiture within a private equity deal and secondly, through an acquisition. Under tight deadlines, Secure-24 twice built an independent infrastructure, migrated applications, hosted them and provided 24-7 help desk support. And all of it was done without any interruption or incident to the glass business.
Carlex, the automotive subsidiary now owned by Central Glass Company, was born out of Ford Motor Company’s Automotive Components Holdings (ACH). With multiple North American locations, Carlex provides global customers with glass products, including original equipment glass, performance backlites, laminated windshields, and aftermarket auto glass.
Between 2007 and 2011, this automotive glass group with operations in the U.S. and Mexico had changed ownership twice. Going from ACH to Zeledyne through a divestiture-private equity deal and ultimately to Central Glass Company through an acquisition, the group needed to maintain daily operations and communications with its various owners. And it needed to continue the manufacture of specialty automotive glass during the transitions.
IT is integral to the operations of any business – both internal management and external collaboration. Outsourced IT partners, like Secure-24, ensure a smooth transition in organizational structure, while providing uninterrupted service to employees, suppliers and customers. As a bonus, outsourced IT can lead to higher operational efficiencies and lower costs, such as capital expenditures and resource allocation.
Separating IT Operations during Divestiture-Private Equity Deal
In 2007, ACH divested its glass business and sold it to a private equity group, which created the company Zeledyne.
ACH and Zeledyne formed a dedicated central IT team that would lead the IT separation project through the change of ownership. The team also included IT outsourcing partners that built an independent infrastructure, migrated specialized applications, hosted the operations, and provided help desk support.
Through a referral, Secure-24 was contracted to stand up a new infrastructure, migrate applications and data, host it all, and run 24-7 help desk support. The various applications included QAD (ERP solution), Oracle (PLM solution), Campfire (SaaS conferencing) and legacy email functions.
“Zeledyne and FTI Consulting liked our phased approach of migrating customized solutions. We later received notice that the group needed another stand-alone IT structure for the acquisition by Central Glass Company. These new owners needed their IT migration done in six weeks, so again we gave the project our highest priority,” said Secure-24 Enterprise Account Executive Joe Sesi.
Maintaining IT Operations during an Acquisition
Central Glass Company is a Japanese manufacturer of glass, chemicals, fertilizers and glass fiber. In 2011, the company expanded its automotive glass business by acquiring automotive glass assets and Carlite-branded parts from Zeledyne. With its newest assets, Central Glass formed an automotive glass subsidiary, now called Carlex.
“This IT migration involved a global business expansion. We were integrating employees into a Japanese business culture. We needed to make sure our IT project was accepted and clearly communicated to all,” said Carlex Chief Information Officer Brian Kelliher.
Kelliher and his central team were brought in as part of the Zeledyne acquisition and are now employed at Carlex. They decided to expand their partnership with Secure-24, which was ready to help prepare the group transition to its third ownership.
Secure-24 was given six weeks to split off the IT operations from Zeledyne and have an infrastructure and network in place for day one of Central Glass’ subsidiary Carlex. Without the IT operations in place, finalization of the acquisition would have been in jeopardy.
Carlex liked the applications that it had utilized while part of Zeledyne. The glass group’s employees were familiar with ERP software QAD and Campfire for sales collaboration. Retaining these systems, along with the legacy email and business operations software, also allowed the transition team to turn over the business with speed.
The first priority of Carlex’s IT transition was to set up network connectivity between all of the newly acquired locations and their new parent company subsidiary in Vonore, Tennessee. Secure-24 took immediate steps to replicate systems, migrate data, and implement QAD first among all applications.
“QAD was important to Carlex for financial reporting, which was part of the acquisition agreement. Once QAD was in place, we started bringing over all of the other business applications,” said Sesi.
In order to ensure uninterrupted service, Secure-24 immediately put into place an end-user help desk to help employees who were transitioning to their new employer. Secure-24’s round-the-clock help desk takes about 50 calls a week from approximately 250 employees.
By April 1, 2011, Secure-24 moved Carlex’s IT operations to a new hosted infrastructure, with networking services, migration of data and applications, managed services and 24×7 help desk support. Carlex had no impact to its day-to-day business, and not one disruption in supplying glass.
Now approaching the project’s one-year mark, Carlex is determining its long-term plans for IT operations.
Gaining Flexibility and Value Through IT Partners
Both Zeledyne and Carlex needed flexibility, and an outsourced partner proved beneficial during the quick organizational changes.
In all cases, Secure-24 seamless solutions for companies that needed a rapid IT transition, especially to comply with regulations and to avoid costly transition service agreements. Secure-24 also works as a long-term partner with cost-effective options to scale IT operations as they may fluctuate.
“Changing businesses are operating under many constraints. They are challenged with operating budgets and IT expertise, especially if it’s not their core business. Secure-24’s outsourced model helps them to meet cost and critical deadlines,” said Sesi.
